Freaking out over tax refund !!

[zerocash]

I'm in TN. Planning on filing ch 7 at some point. I got served a couple weeks ago & have a hearing at the end of this month. Just learned another one is coming after me, but I haven't been served on it as of yet. Pretty sure I have a no asset case, no home, 3 crappy cars (one is completely dead), all owned outright, & of little value. Been living on cash for over a year now & have put this off, as we have been caught up in custody disputes .... we are in some court (3 of them actually) at least a dozen times a year, at the least. I quit paying the CC's about a year and a half ago, when all hell broke loose with the kids and our ex's.

Anywho ... So I just learned that we are getting our tax refund, in the amount of 10k plus. OMG !!! Had no idea, as this has never happened before. There will be some snags in it, as the (other) parent has (illegally) claimed the kids.

Do I hurry & spend it, then file ? Have them take it ? It likely won't come till August, at best.

Any advice, suggestions would be greatly appreciated.

I'm getting nauseous thinking about this, as the days pass, as our situation seems to drastically change as the days go on. Thinking I missed the boat ....

[calco86]

Here was my deal on it, We declared on 10/26/2010. We had numerous 341 meeting so he could wait to see our tax refunds. The court will go back 90 days of income and bank statements. How do you know that it is coming in August, also how much do you make a year? Do you have kids? Can you explain on what did you spend the money on? Also talk to a lawyer, most lawyers have free consults. We just got discharged on 4/7.

Good luck

[zerocash]

Here was my deal on it, We declared on 10/26/2010. We had numerous 341 meeting so he could wait to see our tax refunds. The court will go back 90 days of income and bank statements. How do you know that it is coming in August, also how much do you make a year? Do you have kids? Can you explain on what did you spend the money on? Also talk to a lawyer, most lawyers have free consults. We just got discharged on 4/7.

Good luck

I am filing the injured spouse form, which will cause a 11-14 week delay in getting the refund. I haven't filed yet .... I panicked when I saw the amount. I make about 28k a year, my husband has been out of work for over a year, and we received custody of his 3 kids over the past summer, & we claimed them. I also have one child. I sporadically receive child support (of about $600/mo) although my ex is in arrears of over 7k. We received the first CS payment from DH's ex a week ago .... also about $600.

Suddenly, I feel the need to change my screen name !! Yikes !!

[zerocash]

I was going to use some of the refund to pay the BK attorney, but other than that, I need advice on what to do with the rest. I have been told to just spend it, take a vacation or whatever, that no one cares ..... I don't know what to do. This wasn't expected .... it seems to be getting more complicated as time goes on. I've been having alot of anxiety since I prepared my taxes ....

[chicagoannie]

zerocash - a couple quick questions: Are you filing on your own or with your husband? Also, are any debts being included in your BK debts that were assigned to you guys in your divorce settlements? Or are any of the debts joint with either of your ex-spouses?

Also - please don't count on the tax refund in Aug if there is an issue with an ex illegally claiming children. That happened to me, and I had every proof in the world that I had 100% custody....and it still took the IRS almost 18 MONTHS for me to receive my refund. Combine this with an injured spouse filing and you could be waiting a while for your money.

In any case, you need to confer with a several BK attorneys - most will offer free consults. Read though this forum and make up a list of questions.

And, I'm sure you know this but if you have any money in any bank or credit union where you have a delinquent credit obligation, get those funds out of there NOW. Also, hopefully, you requested the IRS mail your refund because if a creditor gets a judgment before you file BK and they can get at your bank account - they will.

[zerocash]

Thank you Annie. My husband & I will be filing together. I got screwed in my divorce, what was in my name was mine, his was his. In my husbands case, he agreed to take all the debt. The only joint debt was with their house, which she gave back to the bank, out of pure spite.

This tax thing has me all out of whack .... I'm sorry. Maybe it would be better if they take their sweet time, getting the refund to us.

I was putting just enough in the bank to cover living expense (checks), but since I have court in a couple of weeks, I plan to not even do that anymore. Only have $5 in there. I am not in debt to "those banks" .... and yes, the IRS will be mailing a check.

[SunshineGal]

It looks like TN has $10K in personal property exemptions, plus another $10K wild card. Since you're filing with your DH, you should be able to double that and exempt the money from the IRS. Be sure to ask your attorney though.

[zerocash]

ooooh Thank you SunshineGal !! That makes me feel better :-) I'm sure I will have lots more questions, as I need to do something quick .... I think. Thanks so much !!